Iraq seeks alternative gas imports after US exemption ends

Shafaq News/ Iraq is exploring alternative sources of natural gas to supply its power stations after the United States ended a waiver allowing Baghdad to import gas from Iran, an Iraqi source said.

According to energy news platform Taqa, negotiations are underway with Algeria and Qatar to import liquefied natural gas (LNG) under medium-term contracts of three to five years.

The Iraqi government is also banking on boosting domestic gas production and ending gas flaring within three years, "Once flaring is halted, Iraq will be able to rely on its own gas supply for electricity generation," the source said.

LNG imports are expected to start once Iraq completes infrastructure work at the Khor Al-Zubair port, which includes setting up a floating storage and regasification unit (FSRU) and connecting it to a 40-kilometer pipeline linked to the national grid near Shatt al-Basra.

In parallel, Iraq is working to double its electricity imports from Turkiye to meet demand in northern provinces. The current transmission line between the two countries has a capacity of 300 megawatts, which Iraq aims to increase to 600 megawatts by next summer.

Iraqi Electricity Minister Ziad Ali Fadhil met his Turkish counterpart, Alparslan Bayraktar, on March 16 to discuss the necessary infrastructure upgrades. The enhanced interconnection is expected to be operational by the summer of 2025, according to sources familiar with the negotiations. Ankara is also set to import around 300 megawatts from Iraq during other seasons.

Iraq's preparations at Khor Al-Zubair port are expected to take three to five months, with plans to install an FSRU and connect it to the national gas network.

In February, Iraq’s Deputy Oil Minister for Gas Affairs, Izzat Saber, said Baghdad was considering gas imports from Qatar and Algeria following Washington’s decision to end the Iran waiver. He reaffirmed the ministry’s commitment to halting gas flaring by 2030.